Executive reviews a credit background check on a potential new hire.Executive reviews a credit background check on a potential new hire.
Celebrating 40 Years In Business

Pre-Employment Credit Background Checks

Do you know how your new employee’s credit could affect their performance at your company? Many hiring managers don’t consider this information in the hiring process, but credit background checks can be a critical factor when making hiring decisions.

Barada Associates’ comprehensive pre-employment background screening services include credit history checks to give you a clear picture of each candidate’s life and potential. We’re the most trusted source of accurate and timely background checks in the country. 

Don’t make uninformed hiring decisions. Contact Barada Associates today for credit background checks that put knowledge and control back in your hands.

Is Hiring Based on Credit Legal?

Historically, credit background checks have been conducted by lending institutions, credit card companies, and retailers who are seeking information about an individual to confirm a credit application. In recent years, this type of background check has become increasingly popular among employers as part of their screening for potential new hires. 

In most states, this action is completely legal, however, the Fair Credit Reporting Act (FCRA) states that an employer must have written consent from an applicant before running a check on their credit history. The FCRA passed in 1970 also outlines what information employers may be privy to once a check is generated. That information includes:

  • Summary of credit cards and bank loans, including how much money is owed
  • Credit limits
  • Civil litigation involving credit
  • Collections and bankruptcies
  • Past-due or late payments
  • The types of loans, terms-of-payment, and monetary amount of payments
  • List of other credit checks for employment conducted on the candidate
  • Every location the candidate has lived that required a credit check
  • Credit application history
  • Credit score

Call Barada Associates to set up an appointment with credit check experts equipped to conduct checks in compliance with all state and federal regulations.

When to Conduct a Credit History Check

You may be asking yourself, when would I even need to run a credit check on a potential employee? We get it – it may not seem like relevant information. But whether or not you should conduct a credit check falls to two specific factors: the nature of the position and the relation of a candidate’s credit history to the job requirements.

Nature of the Position

If you’re hiring for a position that will have access to company funds, financial records, the company safe, or other relevant financial assets, then you want to hire someone who has a track record of handling finances responsibly.

An employee credit check can reveal if a candidate has had serious financial difficulties, either currently or in the past. An applicant with these issues may be more tempted to use their status in your business to use company funds for personal matters. Additionally, it can be argued that an individual who cannot properly manage their own finances is not qualified to, and would not do a better job managing your company’s funds.

If Poor Credit Could Affect the Candidate’s Ability to Do the Job

Running a credit check is just one way you can try and evaluate if a candidate will live up to your expectations and standards for job performance. For example, if poor credit has led to court-ordered wage garnishment or the candidate needs additional, unapproved time off to attend court proceedings with collection agencies, this is all time and energy they will have to take away from their work. 

While these are common scenarios in which credit background checks can be appropriate, the knowledgeable team at Barada Associates can offer these services to your business at any point in your hiring process. Call us today to schedule your consultation.

Are Credit History Checks Beneficial to Employers?

The topic of employers running credit history screenings is still highly debatable. Does it encroach on employee’s privacy? Can you really use credit to predict a candidate’s future performance? While these answers may still be very nuanced, there is one clear, key factor of credit checks: they are beneficial to employers.

Within reason, you can never get too much information about your job applicants. Everything from their financial records to salary history and academic verification can help you see the full scope of their potential, while also weeding out untrustworthy candidates with falsified applications.

For positions related to managing your company’s funds, such as a Chief Financial Officer or a controller, a credit history check can give you peace of mind that your chosen candidate can handle the responsibility of money management and doesn’t have ulterior motives when handling your funds.

However, it’s important to note that a credit check is not as beneficial when conducted without other more extensive background checks, such as employment verification and license checks, especially when trying to preemptively judge job performance and character. Contact Barada Associates today for information on how all our background screening services can optimize your hiring process.

Reliable Credit Background Checks From Barada Associates

Barada Associates is an industry leader in credit history checks for employers because we understand it’s more than just a numbers game. The decisions you make during hiring can have a lasting impact on your company’s reputation and operations for years to come.

That’s why we offer a background screening process with the lowest dispute rate in the industry, that’s always completed as fast as possible so you’re not held up waiting on information. Our team will work with your job candidates to get the permission and information they need to run a check, and then provide either paper or electronic secured delivery of all generated reports to your hiring managers and HR team for prompt processing.

When your goal is to hire qualified talent that fits your culture and environment, call Barada Associates.

Choose Our Industry-Leading Services Today

Founded in 1979, Barada Associates is one of the first employment screening businesses in the country. Over the years, we’ve combined consistent training, evolving technologies, and proven strategies to ensure we stay ahead of industry trends and are equipped to handle all your background screening needs, including a credit background check.

Contact us to request a quote or schedule a consultation today.

“We wanted an organization that had innovative and effective ways to improve the screening process. The staff at Barada have been very responsive. They understand how their services can assist us and will suggest creative solutions that meet the needs of the Archdiocese. We have been impressed with everyone from the human element on down.”

Ed Isakson, Human Resources Director, Archdiocese of Indianapolis